Large Taxpayers Research Articles

The Effect of Desk Tax Audit Practice on Tax Revenue Collection among Medium and Large Size Enterprises in Kenya

Purpose: Tax is a major issue of discussion for both developed and developing countries. For there to be significant progress in any nation, the government should look for ways of raising income to meet the needs of its citizens. The main objective of the study was to determine the effect of desk tax audit practice on Tax revenue collection among medium and large size enterprises in Nairobi region, Kenya. The study was guided by Lending credibility theory. Methodology: The target population was 562 employees in the Medium Taxpayer Office and Large Taxpayers Office Nairobi region, out of which 234 was sampled, and 167 respondents managed to fill and return the questionnaires implying a 71.4% response rate. Primary data was collected using structured questionnaires that was filled by employees in Medium Taxpayers Office and Large Taxpayers Office in Nairobi region. The study employed an explanatory research design. Data was then analyzed using descriptive statistics, Pearson’s correlation &regression model and finally Multiple regression model. Results: The study further found that Desk tax audit had a positive and significant effect on tax revenue collection β =0.329 p-value =0.0000<0.05. Recommendation: Based on the findings, the government should consider strengthening desk tax audit practices to enhance tax revenue collection. Policies could be developed to ensure regular and comprehensive desk audits are conducted to identify and address tax compliance issues promptly.

Cooperative Compliance in Poland: The Question of Equality

An increasing number of tax jurisdictions are implementing the concept of cooperative compliance into their tax systems. It aims to improve tax compliance by building an enhanced relationship between tax authorities and taxpayers. In principle, the programme is aimed at large taxpayers capable of engaging in aggressive tax optimization that is detrimental to state revenue. Dedicating the programme exclusively to large taxpayers may raise doubts about whether it violates the principle of equality before the law. In Poland, the legislation governing the cooperative compliance programme was introduced on July 1, 2020. As in other countries, it was targeted at large taxpayers. The article therefore discusses the question whether the Polish legal regulations on cooperative tax compliance are in line with the constitutional principle of equality.

The Effect of Online Tax Payments on Tax Compliance among Large Taxpayers in the North-Rift Region, Kenya

The Effect of Online Tax Payments on Tax Compliance among Large Taxpayers in the North-Rift Region, Kenya

Administrative Reform to Strengthen Cooperative Tax Compliance in Cambodia: A Case Study in Domestic Revenue Mobilization

The focus of current study is to discuss the tax compliance structure and the role of administrative reforms in domestic revenue mobilization. There are several reasons why unresolved tax audits keep piling up with (particularly) large taxpayers, causing complaints. After the comprehensive review of existing tax structure, discussion on the existing infrastructure and based on empirical analysis, it is suggested that too much reliance on tax audit revenue, need for a more cooperative future relationship between GDT and large taxpayers, impartial express arbitration of tax disputes to clear the backlog and update the structure of the tax audit system. Lastly, taxpayers need (even3 ) more effectual education so they can comply faster and more accurately: Our research shows that delays at the taxpayer side are just as important, or even more so, than the delays observed at the GDT side. Even large taxpayers have difficulties understanding and preparing necessary documentation (26%) or are unclear about the correct application of laws and regulations (16%). Along the same lines, the GDT should consider to make the incentive for voluntary self-correcting of past tax returns permanent, at least to some degree.

Modeling Determinants of Profitability in Ethiopia Manufacturing Companies: A Dynamic Panel Model Approach

Background: Profitability is the primary measure of the overall success of company. The analysis of profitability ratios is important for the shareholders, creditors, prospective investors, manufacturers and government alike. Objective: The objective of this study was fitted a dynamic panel regression model that efficiently fit the data and further to identify the determinants contributing significantly to profitability in Ethiopia. Methods: This study was conducted on secondary data of 32 sample manufacturing companies collected from the audited financial statements of large tax payers’ office and national bank of Ethiopia. The study was covered a period of seven years from 2011 to 2017. The panel unit root test of Levin-Lin-Chu tests was made for each variable and applied first difference transformation for the variables that had unit root. A dynamic panel regression model was utilized for data handling technique using generalized method of moments (GMM) estimation. Results: We compared the results when one unit increase in lagged profitability, managerial efficiency, capital intensity, GDP, exchange rate and one ratio decrease in leverage, ceteris paribus, turn out were found to increase the profitability of manufacturing companies by around 0.69, 0.179, 4.52E-06, 3.844, 0.04 and 0.393 ratio, respectively. The model reveled that previous profitability, leverage, capital intensity, managerial efficiency, GDP and exchange rate had a statistically significant (P<0.05) effect on companies’ profitability in Ethiopia. Conclusion: As per our findings, the manufacturing companies should minimize leverage financing from its capitals and should emphasize the management of appropriate financing to increase profitability. Finally, we recommended that policy makers should coming up with better policies on improvement of profitability.

Theoretical foundations of voluntary tax compliance: evidence from a developing country

Tax non-compliance is a persistent problem that is becoming increasingly common worldwide. The main objective of this study is to examine the factors that influence voluntary tax compliance among large taxpayers in Ethiopia based on the theoretical foundation of tax compliance. This study used an ordinary logit regression model, a closed-ended questionnaire with 1550 taxpayers, and quantitative data analysis. The regression analysis shows that tax compliance behavior is positively and significantly influenced by government trust, taxpayers’ tax knowledge, tax system fairness, and rewards. However, compliance costs negatively and significantly affect tax compliance. To improve voluntary tax compliance, the government and tax authorities need to be more open and responsible. They must also increase tax awareness among taxpayers through websites, seminars, and the media. Ultimately, they must reduce compliance costs and deliver tangible and intangible benefits to honest taxpayers.

State control over the economic activities of large taxpayers during martial law

The article presents the main scientific and practical results of the analysis of the situation regarding the exercise of state control over large taxpayers in terms of their compliance with tax legislation when applying for a value added tax refund.
 The article examines the peculiarities of exercising the rights of taxpayers to access a fair trial of claims for appealing tax assessment notices, the practice of considering the latter, and practical aspects of relations between taxpayers seeking VAT refunds and their counterparties. The author analyzes the practice of providing legal assistance to large taxpayers in the course of their legal activities. The author also analyzes the legal nature of the VAT refund procedure and identifies the key issues that arise when taxpayers apply for the relevant refund.
 The author proposes to amend the current legislation in order to eliminate the problematic issues arising when applying for a VAT refund, which create the basis for the corruption component, and also force the country to spend significant funds to ensure the work of a large number of tax service employees, as well as the forced costs of paying court fees when appealing against court decisions made in favor of taxpayers when appealing against tax notices (tax decision notices).
 The author proves that the problem of appealing tax assessment notices, which has its origin in taxpayers’ claims for VAT refunds, can be solved quite simply. As a result, it will be possible to improve the audit procedure, eliminate the costs of court fees in obviously losing cases, and eliminate significant gaps in the current legislation that complicate transparent business activities and create corruption risks.

Tax Reforms in Bangladesh: An Overview

In both industrialized and emerging nations, tax reform is a subject that requires ongoing attention. This topic is discussed in terms of creating a suitable tax base, bolstering tax administrations, and guaranteeing equity, efficiency, and progressive taxation. Throughout the past forty years, Bangladesh has implemented numerous reform measures. Since there isn't much research on business matters related to these initiatives in the context of Bangladesh, this study aims to review those initiatives by emphasizing them. This study uses strategies for conducting interviews as well as content and document analysis. According to the study, the results of those reforms are not all that positive. While there are still notable shortcomings in enforcement, audit, and compliance, there are also some notable successes, such as the creation of the Large Taxpayers Unit (LTU) and Central Intelligence Cell (CIC) and the digitization of the tax process. The revenue implications of tax reforms indicate a somewhat improving trend in both direct and indirect tax collection, with extremely gradual progress being seen in the overall tax-to-GDP ratio. It would be wise to investigate incentive programs to recognize prompt compliance and commend tax officers for their achievements. Since there hasn't been a thorough reform attempt in the corporation taxes space in almost ten years, we urge the launch of a new, comprehensive reform initiative that addresses all of the impending issues. Designing of tax policy that promises professional administration and induces adequate compliance remains a major challenge for public finance in developing countries.

Italy’s Cooperative Compliance Regime Broadened in Scope under 2023 Tax Reform Law

In this note, the author outlines recent amendments to the Cooperative Compliance Regime under the 2023 Tax Reform Law. The Cooperative Compliance Regime was first introduced in 2015 for the purpose of encouraging continuous dialogue between large taxpayers and the Italian tax authorities in order to resolve potential tax disputes in advance and obtain tax certainty. To incentivize taxpayers to access the Regime, the Tax Reform Law significantly improves the Cooperative Compliance Regime mainly by broadening the range of taxpayers eligible to access it and introducing further benefits.

A Review of India Approaches to Cooperative Compliance in Light of the International Tax Practice and the OECD Framework

The OECD provides a framework for co-operative compliance. To the OECD-Forum on Tax Administration questionnaires covering the years 2018 and 2019, India responded that its international tax practice is in line with the OECD’s framework. This paper reviews select features of the Indian tax system that are in line with the response. The paper looks at contemporary tax compliance measures such as faceless assessments and dispute resolution that promote cooperative compliance. While it is seen that there have been recent policy innovations to promote cooperative compliance in India, the responses are not based on any structured cooperative compliance approach as that described by the OECD. It is observed that there are in fact some missing elements as many of the initiatives such as the large taxpayers’ unit that ticked many boxes but are no longer in operation. Finally, the paper identifies that single point of contact in the administration, opportunity to clear the past before joining a cooperative compliance framework and internal control framework are initiatives that can boost cooperative compliance in India. Cooperative Compliance, OECD, corporate governance, internal controls, tax control framework, tax certainty, tax assurance, India, tax reform, dispute resolution

Խոշոր հարկ վճարողների հարկման խնդիրները Հայաստանի Հանրապետությունում

The role of tax policy and the tax system is significant in the country's socio-economic development. About 95% of the revenues of the state budget of the Republic of Armenia are provided by tax revenues and state duties, and large taxpayers provide more than 70% of tax revenues. Therefore, from the point of view of the implementation of tax reforms, particular importance is attached to improving the mechanisms for taxing large taxpayers. Based on the analysis of taxes paid by 1000 large taxpayers of the Republic of Armenia for 2016-2021, problems in the sector were identified. In particular, the number of organizations paying taxes of more than 1 billion drams and from 500 million drams to 1 billion drams is increasing from year to year; however, there is no significant change in the amount of tax revenues paid by one organization on average. The small share of direct taxes in tax revenue paid by the top 1,000 taxpayers has been declining in recent years, which means that indirect taxes increase tax volumes.

Factors influencing voluntary tax compliance of self-employed individuals in Davao city

Most self-employed taxpayers, who are exempted from third-party reporting, is being evaded. Compared to employees and corporations, self-employed have a low percentage of compliance due to government regulation focusing more on large taxpayers, resulting in fiscal imbalance. Thus, this study aims to determine the significant influence of the tax behavior factors on the tax compliance status of self-employed individuals in Davao City. The study uses descriptive-correlational method and adapted a modified questionnaire to collect data from 180 self-employed taxpayers. Findings reveal that the level of four indicators: personal, institutional, economic, and social are high than the expected level. It also shows that the level of tax compliance in terms of administration and submitting tax returns are found to be tax compliant most of the time. Using the multiple regression analysis, only institutional and social factors significantly influence tax compliance. It is recommended that the government should further strengthen the tax authority's efficiency and effectiveness while making the tax system equitable. The researchers also suggest tax forms must be convenient and tax structure must be fair and just to likely increase the number of tax returns and ensure the favorable attitude of self-employed individuals towards taxation.

Asymmetries of Power and Capacity: The Zambia Revenue Authority (ZRA) as an Instrument of Resource Nationalism, 1994–2021

Heightened copper prices and the perceived profiteering of foreign mining investors in the 2000s spurred calls for greater revenue from mineral extraction in Zambia. Following the abrogation of the over-concessionary development agreements (DAs) in 2008 and the concomitant formation of the Mining Taxation Unit in the Large Taxpayer Office, the Zambia Revenue Authority (ZRA) has essentially functioned as an instrument of those resource nationalist demands. Building on the professionalisation of the regulatory body under the Mwanawasa administration, the ZRA became a formidable force in the policing of Zambia’s mining fiscal regime. In comparison to the rest of the country’s bureaucracy then, the ZRA functioned as what some scholars have termed a ‘pocket of effectiveness’ (POE). From 2006 until 2014, under the aegis of a ‘technocratic coalition’ made up of officials at the ZRA and Ministry of Finance, sympathetic politicians, and foreign technical advisers, the revenue authority was able to bolster its capacity to administer mining taxation. It is essential that the ZRA is not merely examined as an administrative institution outside of the political realm. This article’s contribution is that it examines the political factors that shape the ZRA’s emergence, performance and sustainability over time in relation to mining taxation. It demonstrates how the nature of Zambia’s political settlement, the structural power of the foreign mining investors and the weaknesses of other government ministries have encumbered the effectiveness of the ZRA as an instrument of resource nationalism. The article is based on interviews with a wide range of actors, quantitative and qualitative data and unreleased sources.

TAX MANAGEMENT POLICIES OF INTERNATIONAL COMPANIES OF THE UZBEKISTAN

Ensuring the necessary level of collection of taxes and other mandatory payments in the Republic of Uzbekistan, organizing the activities of large taxpayers, implementing tax administration of taxpayers and mutual cooperation on fulfilling tax obligations special attention is being paid to the fundamental improvement of service and technical service. In the Address of the President of the Republic of Uzbekistan Sh.M. Mirziyoyev to the Oliy Majlis on December 28, 2018, "One should be interested in paying taxes on time, not evading them." The new version of the Tax Code should encourage honest and honest taxpayers, who are the backbone of the country's development, and punish those who work in secret. "It is necessary to introduce the same fair tax regime for everyone at the expense of reducing the tax burden, it is necessary to gradually cancel tax benefits" as one of the important tasks in this regard.

How can corporate taxes contribute to sub-Saharan Africa’s Sustainable Development Goals (SDGs)? A case study of Vodafone

BackgroundThe COVID-19 pandemic and the climate emergency threaten progress in reaching many of the Sustainable Development Goal (SDG) targets by 2030. The under-5 mortality and maternal mortality rates are well below the targets, and if we progress at the current pace, there is a high risk of not meeting the 2030 goals. Furthermore, the initial progress in the decline in child and maternal mortality since 1990 is likely to be eroded. Much of this progress has resulted from increased sanitation, drinking water, education, and health service coverage. The adequate provision of public services is possible if there is sufficient government funding. When governments have more income, they spend more on public services, which increases access to fundamental economic and social rights and, thus, contributes to the SDGs. One of the key drivers of government financing, taxation, constitutes 70% of government revenue in low- and lower-middle-income countries. Corporate income tax constitutes 18.8% of tax revenue in African countries compared to 10% of tax revenue in OECD countries. Therefore, it plays a critical role in SDG progress.This paper aims to quantify the contribution of one large taxpayer, that publishes their tax payments, (Vodafone Group Plc) on progress towards SDGs in six African countries. We use econometric modelling to estimate the impact of an increase in government revenue equivalent to Vodafone's average tax paid between 2007–2017.ResultsWe find that government revenue equivalent to Vodafone’s taxes made a significant contribution to progress in attaining selected SDGs. We found that the revenue equivalent to Vodafone’s taxes allowed 966,188 people to access clean water and 1,371,972 people to access basic sanitation each year. Over the time period studied, 858,054 children spent an extra year in school and 54,275 children under five years and 3,655 mothers survived. In just one of these countries, Tanzania, the revenue equivalent to Vodafone's tax contribution allowed 174,121 people to access clean water and 223,586 to access sanitation each year. Over the time studied 187,023 children spent an additional year at school, 6,569 additional children under five and 625 additional mothers survived.ConclusionsThese findings demonstrate that the reported contributions from a single multinational corporation drive SDG progress. Furthermore, it highlights the importance of transparent taxes and explores the responsibilities of global institutions, governments, investors, and multinational corporations.

IMPROVEMENT OF THE METHODOLOGY OF ANALYSIS OF THE TAX COLLECTION INDICATOR IN THE CASE OF LARGE ENTERPRISES

In the article, a study was conducted to improve the methodology for analyzing the tax collection indicator, as well as the cases of tax evasion of large taxpayers were analyzed, and conclusions and suggestions were formulated based on the presented analysis.

ФОРМУВАННЯ, КОНСОЛІДАЦІЯ, АНАЛІЗ ТА АУДИТ ФІНАНСОВОЇ ЗВІТНОСТІ ДЕРЖАВНИХ ПІДПРИЄМСТВ

The article establishes that the state enterprises of Ukraine function as public and commercial enterprises according to the principles of exclusivity of state ownership; separation of functions of the state as the owner and regulator, and the state enterprise as a subject of economic activity; combination of commercial and non-commercial purposes, transparency; social responsibility, anti-corruption ideology. It was determined that state-owned unitary enterprises and joint-stock companies based on state property must prepare annual financial statements and consolidated financial statements that are subject to mandatory verification by an independent auditor. The implementation of the principle of transparency requires the mandatory publication of audited statements for the last three years on websites with a storage period of at least seven years. In addition to financial reporting, state enterprises form nonfinancial reporting to reduce the asymmetry of economic information based on a balanced system of indicators. The results of the analysis showed that state-owned enterprises in Ukraine are widespread in priority and strategic sectors of the national economy, including: defense, transport, oil and gas, mining and processing, mining, alcohol, forestry, etc. It was established that according to the Register of Large Tax Payers of Ukraine, a fifth of state-owned enterprises are unprofitable, which indicates a low level of financial state corporate management. The peculiarities of the audit of financial statements of stateowned enterprises, which is carried out by the state external and internal financial control bodies of Ukraine on the basis of international standards, which are gradually implemented in domestic practice, are characterized. The advantages of state enterprises from undergoing audit procedures have been determined; the factors that restrain the consumption of audit services are systematized, and proposals for their elimination and formation of loyalty of state enterprises to the institute of auditors are also developed. Special emphasis is placed on the organization and methodology of auditing corruption risks of state-owned enterprises and joint-stock companies in order to prevent the commission of corruption offenses.

Pengaruh Persepsi Keadilan Pajak, Kemudahan Pajak, dan Modernisasi Sistem Perpajakan terhadap Kepatuhan Penerapan Kebijakan Atas Pmk86/03/2020 Wajib Pajak UMKM

This study was conducted to determine the effect of perceptions of tax justice, perceptions of tax convenience, and modernization of the taxation system on compliance with the implementation of PMK 86/03/2020 MSME Taxpayers. The Covid-19 pandemic has caused the Indonesian economy to weaken greatly, one of which is the MSME sector. It is hoped that the existence of tax incentives for MSMEs borne by the government can help revive the current MSME sector. However, the size of MSME actors is not the same as compared to the MSME actors' tax compliance which is still low in reporting their taxes, this is because the Directorate General of Taxes (DGT) focuses more on large taxpayers while supervision of MSME actors has not been carried out optimally. This research is quantitative using primary data. The sample in this study was SMEs in the Special Region of Yogyakarta. This researcher uses an instrument in the form of a questionnaire. The data processing technique used is multiple linear regression with the help of SPSS. The results of the study indicate that the perception of tax convenience does not affect compliance with the application of policies on PMK /03/2020 MSME taxpayers. Perceptions of tax justice and the modernization of the taxation system on compliance with the implementation of policies on PMK 86/03/2020 MSME taxpayers have a positive influence.

THE TAX SYSTEM OF GEORGIA IN PANDEXIT PERIOD

The topic of the article ,,The Tax System of Georgia in Pandexit Period” is very important and significant, because taxes are one of the main subjects in economic relationship. Generally taxes can regulate the direction of Georgian economic and promote its rapid development. Following in the footsteps of covid pandemic, it has become necessary for the tax system to be appropriate/adequate to the new reality facing the country. From all these, lots of changes have been made and most of them are easing and loyal. Today we are in the period of the end of covid pandemic, thus it is very important to realize and summarize tax system in pandexit period. Significant measures were taken during the pandexit to increase the efficiency of tax administration. Special attention was paid to the most important taxpayers ,,large taxpayers”, who make a great contribution to the formation of the state budget. A large taxpayer office has been set up in the Revenue Service of the Ministry of Finance, Which aims to bring the interests of these types of taxpayers and the state as close as possible to each other. Special manuals has been worked out which made it easier to solve various important problematic issues. During the covid pandemic, a number of entrepreneurs have shown unscrupulous attitudes towards the automatic refund of VAT. New regulations and norms have been implemented so as to control unlawful or illegal refund of paid taxes from budget. The buyer of the goods is entitled to deduct the value added tax paid only in that case if he instead of the supplier, will pay the VAT amount to the budget. The relation between entrepreneurial entities and the state has significantly improved. The main focus was not on finding fault and appropriate sanctioning but also to inform taxpayers about their possible mistakes. In order to perfect this idea, special rules have developed, which means informing taxpayers at an early stage about specific violations and warning them. A loyal approach was formed regarding the inaccuracies allowed by the taxpayers in the declarations, there was introduced audit program of declaration which allowed tax payers to verify their data. In 2021, 15 969 declarations were examined, and the amount adjusted by the taxpayers amounted to 67 170 364 GEL. An entirely new ,,hypothetical taxation” mechanism has been developed, which aims to calculate and reflect the possible hypothetical amounts on the personal account of taxpayers. The regulation has had a positive effect on part of the budget as well as reduced the rate of non-submission of declarations by value-added taxpayers. A new debt management strategy has been developed for 2022, which aims at a loyal approach to the collection of tax debt from entrepreneurs, which involves a variety of preventive measures to reduce tax evasion, as well as improving the rate of debt repayment before the budget and reducing existing debts. The existing regulation is especially important for enterprises whose financial situation was unfavorable at the time of the pandexit. In conclusion, the article gives us very essential information about changes and enscouraging regulation of taxes. While all regulations, such as financial assistance or deferral of taxes are important in oder to support the financial crisis, this should not give the impression that all their losses will be compensate by the state budget. It is very difficult to make right decision in tax laws, firstly, it should not course the crisis of budget, secondly, it must be loyal towards taxpayers. I think that the implemented changes have a positive effect on entrepreneurial entities because most of them are liberal. To sum up all these, stricter tax policies at this stage will be ineffective, moreover, it will cause damage to business and as a result will have a negative impact on the economy.

The effect of attitude and religiosity on tax compliant intention moderated by the utilization of e-Filing

This research examined the effect of religiosity and attitude on tax compliant intention, moderated by The utilization of e-Filing. This research was analytical research with a quantitative approach. Data analysis used the measurement model Structural Equation Model (SEM) with the WarpPLS approach because the model used moderating variables where the WarpPLS approach is very well used in a model like this. The analysis tools use WarpPLS 6.0 Software. Large taxpayers are generally in the form of agencies and individuals, so the population of this study was companies that are in the Directorate General of Taxation of Large Taxpayers Jakarta, Large Tax Service Offices 1 and 2, totaling 529 companies. Religiosity (X1) and attitude (X2) significantly influence tax compliant intention (Y1). The utilization of e-Filing showed a significant moderating effect on the research model. The novelties that can be found in this study include the development of the Theory of Planned Behavior from the basic theory proposed by Ajzen (1991) by involving other variables that affect taxpayer compliance behavior, namely the religiosity of taxpayers. The development of concepts or models of Theory of Planned Behavior (TPB) in tax involves the variables of religiosity, attitude, tax compliant intention, and the utilization of the e-Filing system. In addition, it involves the utilization of the e-Filing variable as a moderating variable.